10. Supplementary Balance Sheet Information

The following tables provide the details of selected balance sheet items as of the periods indicated (in thousands):

Inventories


	December 31,
	2013		2012
Raw materials	$	39,194	$	30,554
Work-in-process		13,186		11,959
Finished goods		10,885		8,023
Demo and consigned inventory		3,479		2,265

Total inventories	$	66,744	$	52,801

Property, Plant and Equipment, net


	December 31,
	2013			2012
Cost:
Land, buildings and improvements	$	38,591		$	38,955
Machinery and equipment		50,755			45,821

Total cost		89,346			84,776
Accumulated depreciation		(56,856	)		(52,438	)

Property, plant and equipment, net	$	32,490		$	32,338

In 2011, the Company capitalized $2.2 million of assets which met the capital lease criteria of ASC 840-30, “Leases—Capital Lease”. The assets acquired under the capital lease are included in machinery and equipment and the related amortization expense is included in depreciation expense. The Company also capitalized software development costs of $0.2 million and $0.6 million in 2013 and 2012, respectively, based on the guidance in ASC 350-40, “Internal-Use Software”. The following table summarizes depreciation expense on property, plant and equipment, including amortization of demo units and the capital lease (in thousands):


	Year Ended December 31,
	2013		2012		2011
Depreciation expense	$	8,184	$	9,612	$	7,100

The following table summarizes total accumulated amortization on capital leases as of the periods indicated (in thousands):


	December 31,
	2013		2012
Accumulated amortization on capital leases	$	1,653	$	861

Accrued Expenses and Other Current Liabilities

The following table summarizes accrued expenses and other current liabilities as of the periods indicated (in thousands):


	December 31,
	2013		2012
Accrued compensation and benefits	$	9,326	$	6,655
Accrued warranty		3,690		2,777
Customer deposits		1,147		3,033
Other		10,413		6,813

Total accrued expenses and other current liabilities	$	24,576	$	19,278

Accrued Warranty

The following table summarizes accrued warranty activity for the periods indicated (in thousands):


	December 31,
	2013			2012
Balance at beginning of year	$	2,777		$	3,035
Provision charged to cost of goods sold		1,963			2,463
Acquisition related warranty accrual		998			—
Use of provision		(2,074	)		(2,781	)
Foreign currency exchange rate changes		26			60

Balance at end of year	$	3,690		$	2,777